How do I Handle Reciprocal Taxation and Pay Connect?

When employees who work and live in different states choose to take advantage of a reciprocal tax agreement between their home and work state, Zenefits will push their resident state tax information to payroll, and sync any tax changes from Zenefits to payroll.

  • Learn more about setting up reciprocal taxation as an employee, and
  • Learn more about how managers and administrators can manage an employee's tax state by changing their work location.

Employees who elect for a reciprocal tax setup should file a certificate of non-residency to their work state. Otherwise, they may still be taxed on income in both states.

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